SPOTT assesses the most impactful producers, processors and traders in the palm oil sector on their public disclosure regarding the organisation, policies and practices related to environmental, social and governance (ESG) issues.
Assessed companies are reviewed on an annual basis to ensure that their inclusion continues to align with this aim and with the needs of our users. The review process includes desktop research as well as consultation with our Technical Advisory Groups. Our selection process takes into account a variety of factors, including the location and extent of the producing and/or processing operations, nominations by interested stakeholders, companies that have volunteered for assessment, evidence of unsustainable practices identified through media reports, and donor expectations. However, as SPOTT has evolved over time, and the demands of our users change, the company selection process has also adapted to align with this.
Given these changes, this year the focus of company selection has been on including significant palm oil processors, as key nodes in the supply chain, as well as companies operating in priority geographies.
Four companies to be removed from SPOTT in 2021
New Britain Palm Oil Ltd. (NBPOL) will be removed from the SPOTT assessments this year, as NBPOL is the only case where we assess both a fully owned subsidiary and its parent company separately on SPOTT. Historically, NBPOL was added as a standalone company, but has since been acquired by Sime Darby Plantation Sdn Bhd (SDP). We continued to assess NBPOL separately from SDP for a number of reasons, including the geographical focus of the company’s operations, and stakeholder interest. However, now that SPOTT is capped at 100 companies we have to re-evaluate the company selection each year to ensure it remains consistent with the current expectations of our donors and stakeholders.
As one of the first companies to be assessed since SPOTT was established in 2014, NBPOL has increased its score to become the highest-scoring company in the 2020 assessment, and it provides a benchmark which other companies should aim to reach. We would like to thank NBPOL for its strong engagement with, and support of SPOTT, and its achievement in continuing to increase the transparency of the company’s sustainability reporting to a higher standard. We will continue to assess NBPOL’s parent company, SDP, on SPOTT for 2021.
Three other companies will also be removed from the SPOTT assessments this year:
Other changes to assessed companies
Three companies will also be updated to be assessed under their parent companies. This is to ensure that all subsidiaries under the parent company that operate in the palm oil supply chain are captured as part of the assessment:
All previous assessments of these companies will remain accessible through the SPOTT website.
Four companies to be included on SPOTT in 2021
The removal of four companies from the palm oil assessments in 2021 allows for the inclusion of four new companies. In line with our company selection process, we have identified four key companies to include for the 2021 assessment, based on either their significant processing volumes or having operations in priority countries for our stakeholders and donors.
The four new companies are:
ZSL has notified the selected companies regarding their forthcoming assessment on SPOTT. SPOTT assessments of palm oil companies will begin in July, and we will contact companies with their draft assessments in August/September, providing them with the opportunity to make further disclosures ahead of the final review and publication of assessments. Final assessments will be published on SPOTT in November 2021, ahead of the Roundtable on Sustainable Palm Oil (RSPO) 19th Annual Roundtable on Sustainable Palm Oil (RT19).
